Türkiye cut steel production by 5% m/m in February

In February 2024, Turkish steelmakers reduced steel production by 5% compared to the previous month to 3.08 million tons. The country was ranked 7th in the global ranking of steel producing countries (71) by the World Steel Association.

Compared to February 2023, steel production in Türkiye increased by 46.6% in February this year. The sharp year-on-year increase reflects the negative market conditions for Turkish steelmakers that were observed throughout 2023.

In January-February 2024, Turkish steelmakers increased steel production by 34.5% compared to the same period in 2023 – to 6.33 mln t.

In 2023, Türkiye reduced steel production by 4% compared to 2022, to 33.7 million tons, and in 2022 – by 12.9% y/y, to 35.1 million tons. The decline in steel production in Türkiye in 2022-2023 is due to macroeconomic instability, which has led to high uncertainty in the domestic market.

There are 30 steelmaking plants in Türkiye, including 4 blast furnace plants and 26 electric arc furnaces. Their annual steelmaking capacity is estimated at about 60 million tons. That is, in 2023, capacity utilization was at 58.5%.

Analysts expect an improvement in the Turkish steel market this year, driven by global growth in steel demand, lower interest rates globally, etc. In its report for October 2023, the Worldsteel Association forecasts a 5% increase in steel consumption in Turkey in 2024 – to 40.6 million tons.

TCUD predicts that domestic steel demand will grow in 2024, supported by investments and new capacity launched in the second half of 2023. In general, Turkish producers Kardemir, Yıldız, Colakoglu Metalurji, Hasçelik have planned multimillion-dollar investments in new production facilities for 2024 and beyond. Due to difficulties with exports, Turkish companies want to increase production of higher value-added products for domestic needs.